Cape Town and Shanghai have been earmarked as cities that are predicted to have a prosperous prime real estate market in 2021. This is according to research by Knight Frank, released on Monday, November 23, which estimates that the two cities’ prime forecasts will grow by 5% next year.
While both metropolises are expected to experience increased demand and sales volumes for prime homes, the supply will remain the same in Cape Town but fall slightly in Shanghai.
For 2021, 20 of out the 22 cities that were analysed in the report are expected to be subject to property prices either increasing or remaining flat. Values are also expected to rise by 2% across the board. “Despite the financial turmoil that has resulted from the coronavirus pandemic, prime property markets have been largely resilient, underpinned by stimulus packages and low borrowing costs,” Knight Frank said.
Vancouver, Canada and Miami, US are both expected to have a jump in sales activity “as buyers reconsider their property requirements in light of the pandemic” and prices are expected to increase by 3% and 4% respectively in 2021.
Prices in New York are expected to slump by 3%, and are expected to remain flat in 2021 due to excess inventory being brought up by buyers who are “recognizing its relative value”, Knight Frank said.